Real Estate Update For Retirement CommunitiesReal Estate Update: May 2008 The recent lowering of interest rates at every Fed meeting hasn't seemed to help the real estate market. In the past, this was a sure fix to stagnant markets but it isn't working that way anymore. Foreclosures are increasing worse than ever, people cannot sell their homes unless they drastically lower their expectations, and short sales and foreclosure opportunities are rampant. Ever so often you get the feeling something has fundamentally changed in our society--and that time I feelis now. People have become aware awakened and are smelling the coffee--whether it is a good or bad aroma I'm not sure. We are a nation saturated with debt Our society lives on credit We have no savings We fear for social security and medicare They tell us our children and grandchildren will suffer We have no good energy policy for the future There are too many homes on the market and not enough buyers for them Foreclosure rates continue to rise due to the subprime market crisis but we knew all these things didn't we..now The Fed is in a quandary and is experimenting to find solutions--lowering interest rates is not the simple solution as in the past. How we are changing: We are pulling back on spending -- even though we are told it will not help the economy We are cutting back on our use of energy -- as prices soar We are starting to save -- for an unclear future We are paying off our credit card debt -- as fast as we can We are not traveling, buying unnecessary items, furnishing our homes like before How does this affect your home buying decisions? You may not get your home sold at the price you want in some areas -- those same areas are good places to buy You may sell your home and move to a less expensive area -- to pay off debt and help your children pay off theirs -- You may rent -- You may pay off credit cards before buying any luxury items You may take retirement savings out because you have to You may start a savings account for your grandchildren instead of having some things you envisioned in retirement And out of this may come creative solutions--as only Americans can create--doing the same things in the same way may not work anymore -- people are retiring to RV's, cabins, boats..creative solutions to their problem -- Retirement communities should be investigated as a good choice as they are usually priced a little better than the general market (but check with your Realtor)In fact, there are some incredible buys out there in active adult communities--check this website thoroughly and go directly to the community to see what their latest price offerings and incentives are. You may start thinking about what is most important in life and making simpler choices. As I said, I am not sure if the aroma is good or bad--maybe just a little of both. (This article is information only and not advice--please consult with your real estate and financial advisers for advice.)
Real Estate Update: April 2008 The real estate season is upon us beginning with April in most areas of the country. How is your local real estate market doing. You can easily find out by checking with a local Realtor and having amarket analysis of your home. If the Realtor tells you the market is still slow, things aren't picking up, then this will give you a clue to what your retirement market in another state is doing as well. Most retirement areas of the South and West rely on how the homes are selling somewhere else such as the Northeast and Midwest. Where does the market come from for Myrtle Beach, for an example. People who purchase in Myrtle Beach have usually sold a home (or have a second home) in Ohio, for instance. So if you live in Ohio, and the market is sluggish, then the retirement areas of Myrtle Beach are probably sluggish too. (Not to mention all the condominiums and backlogged inventory there from over zealous speculators.) However, if things are starting to move in Ohio, you'd better check Myrtle Beachnow. Don't wait for the "bottom" because it will not shout out to you "this is the bottom--buy now." Purchasers of Florida homes mainly come from the Midwest and the Northeast. Purchasers of homes in Arizona come mainly from the Midwest. Californians move to Nevada or the Northwest. So how are those markets doing. Find out where the market comes from for the area you want to retire to, and how it is doing, to know when things might change. That said, be aware that many experts predict prices may go lower still. If you get your homesold, you may wish to rent for a year to see how things go. On the other hand, it is now a buyers market and there are some very good "deals" out there. So what should you do. Only youcan answer that question. It is a matter of personal lifestyle and financial goals. There are lovely senior apartment complexes for over 55. While a rent increase may happen every year instead of a consistent payment on a fixed mortgage, renting has other cost savings and one big advantage: you can try the neighborhood out to see if you like it. I did this and it worked well but it was tiring moving all our stuff from one place to another when we finally didpurchase. I wish I knew an easier way. I just don't want to give up things I have accumulated over the years and have special meaning for me. The Fed continues to drop interest rates. This is mostly to help out those who are in danger of losing their homes when variable rate mortgages reset. This is another tempting factor to buy a home now. If you don't want to pay all cash for your new retirement home, these rates are fabulous right now. It is predicted there will be further interest rate cuts by the Fed. After that, we will have to look again at the real estate market. The real estate year is upon us and time for making some decisions if this is your year to buy your retirement home. Please consult with your financial advisers. This website is for information only and not advice.
Real Estate Update: March 2008 The recent theme of "change" in the presidential debates brings up the realization that no matter who wins the presidential race, change appears to be something America wants and so is coming. And this goes for the real estate market as well as the country. Note the following trends:
If you are ready to move and need to sell your long-time home, experts say before late 2008 may be the best time to do it. (Please make your own decisions about when to sell by consulting local Realtors and Financial planners and doing your own investigations--this website is for information only and not advice.) After 2008, prices of homes may drop further, according to some experts due to further foreclosures, making even more properties come onto the market because of reset of loan rates. We certainly didn't need this crisis at a time when boomers want to sell their homes. (It is possible that when you buy, the new home may have also dropped in price so you can make it up this way.) If you are lucky and get your home sold, resort areas may be the best places to buy (this is where the boomers are moving.) Other areas would be in keeping with recent trends in migration: Besides booming resort areas,(some resort areas,however, have been overbuilt and are currently going through a slow period, but over the long term, the outlook is more favorable for resort areas) look into small towns outside the suburbs, college towns, quaint and scenic communities, and sophisticated urban centers. See our new page about Retirement Resorts. We will feature more of the above types of communities in our search for retirement places (please note our recent FOCUS series featuring states like Tennessee and Georgia known for these types of towns.) Overvalued areas, near-term, according to experts, continue to decline in areas like California, southern Florida and the Northeast as a result of the overbuilding and recent crisis. The trend is to moving toward warm areas as the most popular states for retirement still tend to be California, Florida, and Arizona. California, in addition, is culturally appealing to boomers who want a more relaxed environment. Other areas are the southeast and southwest. Should you buy now--that is the tricky question--we will have to wait and see to know the answer if this was the right time to buy, (no one knows the future of real estate--please consult with real estate professionals) but if you do buy now and can hold on for a long term, the above-mentioned areas may be best choices to consider to increase chances of holding their values over the long term. Most retirement communities have adjusted or will be adjusting their prices for the spring market but be cautious and buy right and ask about any incentives they may have. Discovery tours at retirement communities seem more abundant than ever. Book your tour now before the summer rush. (Please consult with your financial advisors, local Realtors and other professionals--this website is information only and not advice or even opinion.) Real Estate Update: February 2008: February is not considered a "hot" buying month for real estate but it is a good month for those looking for bargains. It isn't quite spring when things get going and yet homes that haven't sold over winter may be further reduced by anxious sellers. I know at my retirement community there are some amazing bargains in this pre-spring time frame. Seniors do not have to move at any special time of year so they should take advantage of these slow months and the incentives offered by retirement communities now. Perhaps you have considered buying a second home condo or getaway cottage. In addition to single-family homes, many retirement communities offer a condominium option which is perfect for a second home. Some are in resort areas, and the community may have an option to allow you to rent out your condo when you are not occupying it. We will have more information on second homes in the future. This is a different type of property from age-restricted properties but still of great interest to many retirees and offer another option in retirement. For this reason, we are interested in providing information on this to our visitors. Meanwhile, here is a book on the subject if you are interested in second homes: "How a Second Home Can be your Best Investment" by Tom Kelly with economist John Tuccillo. We have seen some outstanding incentives being offered at over 55 retirement communities but no telling how long these will last so this is a good time to look around to see what bargains may be out there. In most cases, prices have been dropped. Will prices continue to drop is the major question. No one knows the future. There have been 2 interest rate drops by the Federal Reserve in January but still no major effect. Buyers can't buy at retirement communities until their homes have sold. Still there is the perception prices may drop further so buyers are holding off. But baby boomer retiree sellers can often wait so they are not anxious to drop their prices further on their long-time home to purchase retirement homes. Of course, this is not good for builders of retirement communities and is causing alot of strife for many of them. As I have mentioned before, these affects are worse in some areas than others so please check with the local Realtors as to local real estate conditions. We may need further legislation to help out in our current real estate crisis especially where the upper priced homes are concerned. These are usually the homes that retirees need to sell in order to purchase into a retirement community. There has been more marketing of Discovery Tours offered by retirement communities--offering to give you 2 or 3 nights at discounted rates in nearby hotels or on the property to view the community. This is a good time to take that exploratory trip to that town you are curious about. Hook up with a retirement community that has a deal too good to miss and go visit now. Simply let the retirement community know you are interested and they will be happy to send you information on any deals for visitors to their community. Tell a retirement community about your own unique situation and maybe they can help if you are interested in buying in their community. They may have some creative solutions you don't know about to help you get moved. Check back in March for another real estate update.
Hello and Happy New Year: January 2008 Real Estate Update: We hope you had a great year and this year will be even better. I know for retirees some just scrape by every month and others should scrape by each month keeping in mind to save their nest egg and not spend it away. There are things that retirees just have to do differently. Before I was "retired" I would buy just what I wanted with little regard to how much it cost. For me if a party was coming up and I had to have something new, I would simply go out and buy whatever that was at the asking price. I never bothered with sales. Now that I am retired--sort of, I am beginning to notice sales like the one I came across the day before Christmas. Yep, I needed a new outfit. I thought I would just pick up a new turtle neck sweater. When I got to the store they were having a 60% off sale. All the clothes I had seen the previous day there were now more than half off. I couldn't believe it. The same sweater selling for $60 was now only $26. This was definitely an attention getter and eye opener. These were real bargains and I coudn't resist. I bought a whole new outfit and more. The same thing can happen in the real estate housing market. There are real estate bargains out there. Real estate prices are dropping. You just have to know about them and say "wow." Buyers of new homes are waiting because they think prices may come down more. So until the homebuyers say "wow," the housing inventories may continue to build up. If you want to buy now, there are desperate sellers and there are discounts at retirement communities--not all but definitely some. It begins to get very tempting indeed. If you can get a real bargain and ride out the current market til prices go up again, maybe this is a good time to buy after all. Not knowing the future, I can't say for sure but there are some good bargains out there that make you want to buy now. I just got a marketing letter in the mail from Summer Glen Retirement Community in Ocala, Florida, and it made sense. It was selling well because of their discounts which they say make for an excellent value right now. Up to a $60,000 discount on homes and you can purchase now and have up to one year to build. Some parts of Florida home prices are falling up to 20% right now from their highs. Will they fall more. If you think so then look for a bargain that you think you will feel comfortable with. Of course, it continues to be a problem getting your current home sold. That is why home prices are falling--fewer buyers and more inventory. This scenario continues. There are retirement communities that have special offers of helping you sell your home and if it doesn't sell, you don't have to go through with the new home purchase at their community. How generous and how obvious that some communities are desperate all to a buyer's advantage. For those who have sold their current homes and can put down a good size downpayment and have good credit, the national interest rates have come down to an average 6.l7 according to Freddie Mac. Of course, many retirees can buy all cash from their home equity, and do not even worry about the interest rate issues. But the lower interest rate will help to increase the number of buyers for your home. Another thing to compare is what rents are. As rents continue to go up, since many people are choosing to rent rather than buy now, buyers will eventually decide it is better to buy. But, again, they have to sell to buy or rent. So it's a vicious circle we are in. We need to break the cycle to restore balance in the market. Another real estate tip for anyone: Check your property taxes. If your home has lost considerable value, you may be able to reduce your property taxes. Call your County office. A financial website I like is www.dolans.com for tips on how to do this. As spring approaches, more buyers tend to be out there looking so chances to sell your home increase. See our tips on how to sell your home. Be sure to be ready with an up-to-the-minute market analysis from your local Realtors to make sure you are priced right. For buyers, the winter season is a good time to find those desperate sellers who didn't get sold over the summer and fall. Come back next month to read about the continuing drama of this current record-breaking real estate market Real Estate Update: December 2007 Real Estate Market Update 12/07 - On Thursday, Nov 29, Bernanke, Chairman of the Federal Reserve, hinted in a speech that there may be another rate cut at the next meeting. I think it will happen but we need to wait for the actual meeting, Dec. 11, to know for sure. 2008 may be worse than 2007 in real estate sales for builders, according to some industry leaders such as Centex and D R Horton. These are opinions of some, but there is no way to predict the future of real estate for everyone accurately so you must make your own investigation. Inventory continues to be the main problem. There will be more inventory in 2008 as there continues to be more foreclosures. Other factors hurting the market is the perception buyers have that prices of homes will fall further and they are waiting to buy. If you have to sell your major home, you may have to sell it at 2004 prices, if you can even get it sold at that price. Again, some markets are better than others, so check with your local Realtor and get a thorough market analysis (which a Realtor will give you at no cost), as each area is different and we do not give advice or opinion. The worse hit areas for inventory levels, according to a recent report, are California, Florida and Ohio. These are areas where there were the most investment sales for the sole purpose of reselling at a profit. When investors couldn't resell them as the market changed, they dumped them, and now everyone is paying the price for this reckless buying. In addition, more inventory is piling up from those walking away from homes that they cannot afford any longer due to rising house payments. Wish I could be more cheery. If you need to sell, make sure your home is not overpriced in this market, seek professional, local advice, and see my Tips on How to Sell Your Home. The best markets in real estate right now are the first-time homebuyers. They have some cash, are in the lower price ranges, and need a home. Unfortunately, these are not the buyers for people who want to sell their long-term homes to buy a retirement home. Usually retiree's homes are in a higher price range and buyers are few because they, in turn, need to get their home sold first. That is the main reason retirement communities sales are down. Buyers are canceling when they can't get their homes sold. It is a domino effect. However, the Federal Reserve says they will respond to any needs of the housing market if the situation gets worse. Right now, things are in line with my previous updates. Even though you may not get as much for your home (depending on your local market conditions) as you would have in the two previous years, remember that if you purchase again, you may also get a better price on the new home to make up for the loss. At retirement communities, incentives are strong and prices have been reduced at many communities. Many of the prices on my website have not been changed because there are so many its hard to keep up with it so please check with the builder for current prices and additional incentives. Year end incentives are very strong. Existing new homes at many retirement communities are further reduced in price for those who can close before year-end. Builders of retirement communities say its a great time to buy but do check with your local Realtors for advice and opinion. Rentals at retirement communities probably won't see the same price reductions because there is good demand. People who aren't ready to buy, hoping for further price reductions, which is the current mindset, will rent. Until the mindset changes, rentals remain strong. A word about Levitt and Sons filing Chapter 11. This is one of the major builders, although smaller than some. What an unfortunate thing--it has caused anxiety in those who purchased homes that were not yet finished being built. Clubhouses and amenities may not get built. Everything is put on hold pending hearing from the court, according to their rep. There is an information number on their website if you have questions. The only way you know for sure, when you buy a new home in any community, that you will receive an amenity is that it has already been built when you purchase. See my condo tips. Please come back for our update in January, after the next Fed meeting in December, as we continue to watch the real estate market.
Real Estate Update: November 2007 At the most recent Fed Reserve meeting, interest rates were cut 1/4 point. This is good for housing. Some retirement communities are reporting they have loans available at lower interest rates now. Also, prices have been rolled back at many communities. R. Michael Curtin, Sr. Vice President of Marketing and Sales, WCI Communities, says they have rolled back prices to December 2003 levels (right before the rise) on selected homes and communities and WCI has "plenty of funds for mortgage purchases...and many different programs to fit your particular needs." If you are ready to buy now, check the prices and offerings at your favorite communities. They may be more favorable. Also, continue to look for outstanding year-end incentives. Real Estate news has been so negative in the past year and a half. Hopefully, we will hear more encouraging news in the future as reported by WCI. Have a happy Thanksgiving and look for Holiday offerings and open houses from your favorite communities. 
Real Estate Update: October 2007
To continue our real estate update on the Sept 18 meeting of the Federal Reserve, we are glad to report that the main interest rate was dropped--not just a quarter point but a whole half percentage point! This should make it easier for buyers to buy and bring more buyers into the market. But now the question, will it help enough. The problem of too few buyers and too much inventory continues. So far, we have not seen fabulous results from interest rate drops. These things can take time, however. The prediction is that there may be further interest rate drops but that is not certain. We hope this situation we are currently in can be helped by the Federal Reserve's future decisions. Check back with our real estate update. One of the problems is inventory keeps piling up. In our area there is a year and a half backlog. That means it will be a year and a half before we can catch up with inventory sold. There is also the fear that instead of catching up, this inventory will continue to pile up. This is the greatest fear now. Right now, the only thing that works may be price. Yours may need to be the best-priced home out there of your comparable homes. Now that I say that I have to qualify it and say to check with your local Realtor as this may not be true for your area or price range. Yes, I can't be too upbeat on the overall situation. However, The silver lining is this: It is a great time to purchase if you are a buyer. Interest rates are low, many sellers are wanting for an offer and often very negotiable, there are a lot of homes to choose from, and often yours is the only offer. Retirement communities are also very negotiable. There are often year-end incentives so as to make the year's sales look good, but this year there are many more price reductions in communities which makes it an excellent time to buy. Check back for a real estate update on year end offers. If you have sold your home and still don't want to buy yet because you think prices will go lower, you can rent for awhile. Most retirement communities have rentals available. Of course, this means 2 moves and it may be too hard for you. That is a decision you have to make. However, I often recommend that you rent for awhile in the community and area you like, to make sure you like it before purchasing. Other options are senior rental apartment communities. Search here for Senior Apartment Rentals Assisted living is often primarily a regular apartment rental retirement community with assistance available if you want it. See Assisted Living Communities You have heard that some builders have been losing money--often because they overpurchased land in the last couple of years--so now they are anxious for offers and may lower prices in the community of your choice. I have seen many of these lower prices and report them on my Blog Page or real estate update. There is one other thing I feel I should bring up on this real estate update. If you are a seller, when an offer comes in, make sure you notice who the buyer is getting their loan from. It is advisable to check this out because many lenders are going out of business and transactions are falling through because of this. For buyers, it is preferable to get your loan from direct lenders for the best chance of getting your deal to close. Some of these are Bank of America, Wells Fargo, Weichert Realtors, Sun Trust,etc. Ask if they are a direct lender to find out. This is information only and not advice. Please shop your own loans or check with your local Realtor for information on choosing the best lenders or mortgage brokers, if you prefer, in your area. How do you get your home sold in the first place, See my How to Sell Your Home Tips Real Estate Update: Aug 2007
Housing reports came out today 8/24--and it had a positive upbeat..however, it depends on where you live. Check with your local Realtor to know how your area is doing. It was reported that while this year home sales were down, nationally, July showed a rise from June. So the sales were unexpectedly better than forecasted by some experts. If interest rates come down (not predicting they will), be ready for more of a burst of buying (my opinion but always check with your local Realtor) and have your home priced right if you are anxious to sell. Timing is everything and if we have a little improvement and then interest rates drop, we may get a burst. If you have a home to sell in one of the following areas, you may be having some problems selling or getting your price: Florida, California, Wash., DC, Arizona. The problem is inventory. These areas had a lot of speculative buying in previous 2 years and now have built-up inventories of homes that won't sell. Until sellers are more realistic and list their homes at prices that will sell, inventory may continue to pile up. How do you know if it is priced right? These are signs:
Always have a comparative market analysis done by a Realtor before pricing your home. Look at what homes are selling for more than what they are listed for. Be sure to follow my Tips to Sell Your Home. Go Here (2nd article) Increased foreclosures continue due to speculative investments and risky loans in previous years. Low mortgage rates have not worked to bring in more buyers. They are still hesitant. Getting financing just got harder for borderline buyers. Flat or negative appreciation continues in most areas. It takes longer to sell a home than previous to 2006. Inventory continues to build up. Retirement Communities Real Estate Update: Slowed home sales just as in the general market. Some retirement community builders are having problems due to the increased amount of retirement communities that were built in 2006. Also, homebuyers need to sell their homes before buying their retirement home and so sales are slow at some retirement communities. Cancellations of buying contracts have increased at retirement communities and all housing. The increased difficulty of obtaining financing has forced the cancellation of more contracts. Many retirees, however, pay all cash and are not affected by interest rates or financing--just getting their home sold. Most upscale communities are not as much affected by financing volatility as a large percentage of buyers can pay all cash. All of these factors characterize the current market and make it a buyer's market. Real Estate Update: Market Watch Tip: If you have a home to sell, the direction interest rates takes is of great importance because it affects the real estate market. Your Realtor should keep you informed along these lines especially in the current market. The next Federal Reserve FOMC meeting is September 18, 2007. If you tune in to what the Board of Governors say when they make speeches and reported in the news media, prior to meetings, you may get hints as to what may happen at future meetings and what may happen to interest rates that affect home sales. Of course, you have to wait for the actual meeting to know for sure. For instance, Federal Reserve Chairman Ben Bernanke gave a speech on Fri., Aug 31. Whenever he gives a talk, he is reported in the news. He didn't give a hint that interest rates would be lowered. Many were expecting that he might. He did say the Federal Reserve would step in if needed to help in the current housing crisis. This sounded to me like they would help if it was affecting the economy severely. Read the speech and come to your own conclusions or consult with your local Realtor. President Bush that same day gave a speech saying there would be some help to homeowners in danger of losing their homes through the FHA program. Bottom Line: Let's wait to see what happens at the 9/18 meeting and come back for our next real estate update. This real estate update is for general information only. Always check with your Realtor in your local area before making any real estate decisions. See my Tips to Sell Your Home to Buy Your Retirement Home Part 2
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